Licensing Sends a Love Note to Would-Be Vendors

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by Samuel Pordengerg Feb 6, 2023 News
Licensing Sends a Love Note to Would-Be Vendors

Licensing and Consumer Affairs put out a press release last week reminding the public about licensing requirements, but they could have sent a romantic message.

Roses are red, So it is writ; If you start a small business,

Make sure it’s legit.

Balloons are top sellers And chocolate is sweet But you need a license

To sell on the street.

Thinking of retail, Perhaps online? Remember a license

Costs less than a fine.

It is a good time to remind the V.I. government officials that there is no better time to regulate business activity than during the week leading up to February 14th.

Typically, street vendors in the territory multiply in mid-February, vying for customers looking for Valentine’s Day gifts. (Shutterstock image)

The scene has been repeated many times on Mother's Day. The stands are just as popular with customers as they are with their owners.

In an interview, Friday, Commissioner Evangelista and Licensing Director Graham hailed an increase in what they called "creative entrepreneurs" in the territory.

Commissioner of Licensing and Consumer Affairs Richard Evangelista says he favors an approach of education over regulation. (Submitted photo)

The department is dealing with some residents who are not following the rules.

The good news is that the economy is recovering from the decline of the COVID epidemic.

In his State of the Territory Address two weeks ago, the governor stated that new business license applications doubled in the next four years.

The trend continues according to the most recent figures. The first quarter of the fiscal year will be in October. Evangelista said there were 635 new license applications. In the same three months the previous year, just 205 new and 1,334 renewal were recorded.

Evangelista said that there is a greater proliferation of businesses. He and Graham have noticed an increase in the number of people selling things on the internet.

Licensing has a responsibility to encourage business but also to ensure a level field of competition and to protect consumers.

Evangelista said that street-corner and online marketing needs to be regulated so that it's fair to those people who have bricks and mortar businesses.

Graham said that consumers should be able to trust that what they buy is what they get.

Graham denied that they were trying to trap people. The division respects the distinction between an online marketer and a person who is conducting an electronic version of a yard sale.

DLCA Director of Licensing Horace Graham discusses the agency's budget at Thursday's hearing.
DLCA Director Horace Graham testifies at a hearing. (Source file photo)

People who conduct a sideline business are applauded. Graham wants people to know that they don't have to hide.

Depending on the size of the business, license fees can be very high.

The mobile retail license fee is $65 and covers activity for a year for those who sell holiday gifts for a few days at a time.

Add-ons can be added. The initial cost for a first-time vendor is $137. The cost of renewal is $65. If you want to keep a specific spot on the roadside, you need a placement permit from the Police Department and a health card.

The cost of compliance is less than the cost of a fine. It is a crime to operate without a license and can lead to jail time and fines of up to $500.

Both officials said that the emphasis of the department was not on punishment but on cooperation.

Graham said that Licensing has considered action on a case-by-case basis for business owners who didn't renew their licenses during the flu season.

Another example was cited by Evangelista. The law has changed so that people applying for a license or renewal don't have to show a tax clearance letter from the IRS. That doesn't mean the tax obligation is gone, but the change made it easier to get a license.

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